Bitcoin Withdrawals Reach Record Highs Indicating the Arrival of a 'True Bull Market'
Summary:
Bitcoin is being withdrawn from exchanges at record rates, with nearly $2.3 billion pulled in a single day. Glassnode reports a significant decline in Bitcoin reserves as the digital asset is challenging for all-time highs. The current scenario indicates an influx of new investors into the market and anticipates the arrival of a 'true bull market.'
Bitcoin is being withdrawn from exchanges at the fastest rate seen in years, aligning with Bitcoin's price movement that's challenging the all-time highs. James Van Straten, a research and data analyst at CryptoSlate, noted high-value departures of Bitcoin from exchanges on March 3. He indicated that even though mainstream investors haven't fully embraced crypto yet, there's an ongoing depletion of Bitcoin reserves in the background on Bitcoin exchanges.
Relying on data from Glassnode, a firm specializing in on-chain analytics, Van Straten highlighted that on March 1, withdrawals reached almost $2 billion. He expressed his surprise at the withdrawal rate, noting that more than $2.3 billion worth of Bitcoin left the exchanges on the previous Friday, one of the highest withdrawal figures seen in over half a decade.
Looking at the data from Glassnode, daily Bitcoin outflows appear close to those seen on June 28-29, 2021, a period that experienced record withdrawals. Van Straten also mentioned the impact of U.S. spot Bitcoin ETFs, excluding nearly $200 million that were transferred to Coinbase Pro, the custodian.
Notably, Binance experienced withdrawals of about $400 million and Coinbase handled the remaining withdrawals. The Binance withdrawals are particularly interesting as they are not linked to the ETF.
As per figures released by Glassnode, the total Bitcoin assets held on the tracking platform it oversees were at 2,286,347 BTC ($142.5 billion) as of March 2. This is the smallest quantity since March 2018 when Bitcoin was priced at only $8,000.
Concurrently, data reflecting Bitcoin's market structure signify an influx of new entrants. Crypto Dan, who contributes to the on-chain analytics platform CryptoQuant, tracked the changes in the ages of unspent transaction outputs (UTXO) in one of his latest Quicktake market updates. He noticed more recent coins being involved and observed that coins dormant for six months or longer were becoming active. He forecasted a surge in new individual investors, which he claimed would push us towards the 'true bull market' we seek.
Published At
3/3/2024 6:05:00 PM
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